ID :
195209
Fri, 07/15/2011 - 13:19
Auther :
Shortlink :
https://oananews.org//node/195209
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SC First Bank plagued by prolonged strike
SEOUL, July 15 (Yonhap) -- A prolonged labor strike at SC First Bank is sparking concerns that the bank's business may be dented amid customers' deposit withdrawals, industry watchers said Friday.
The strike at the South Korean unit of Standard Chartered Plc. entered its 19th day on Friday, with no immediate end in sight. Unionists walked away from their jobs on June 27 to protest a management plan to adopt a performance-based salary system.
As the strike showed signs of lasting long, the bank decided Monday to temporarily shut down about 10 percent of its near 400 branches, causing customers to face inconveniences in using banking services.
According to industry sources, close to 1 trillion won (US$943 million) in deposits has been withdrawn since the start of the walkout. A spokeswoman at the bank said the size of deposit withdrawal is smaller than the amount, but declined to elaborate on details.
The labor strike by the bank became the longest in the history of the local banking sector.
SC First Bank is the first lender in South Korea seeking to introduce a performance-based pay system, sparking vehement opposition from its labor union, which claims the new pay scheme is merely aimed at reducing labor costs.
Out of 6,500 bank employees, half of whom are unionized workers, about 2,900, according to labor union estimates, have been staging a rally at a resort in Sokcho, 213 kilometers east of Seoul.
The bank said management and the labor union have yet to narrow differences.
Richard Hill, the CEO of SC First Bank, visited the walkout site last week for negotiations but failed to draw an agreement with the union, which insisted the new payment system does not suit Korean culture.
The Financial Supervisory Service, the financial watchdog, said it is closely watching the situation and plans to add more on-site inspectors in case of contingencies.
The strike at the South Korean unit of Standard Chartered Plc. entered its 19th day on Friday, with no immediate end in sight. Unionists walked away from their jobs on June 27 to protest a management plan to adopt a performance-based salary system.
As the strike showed signs of lasting long, the bank decided Monday to temporarily shut down about 10 percent of its near 400 branches, causing customers to face inconveniences in using banking services.
According to industry sources, close to 1 trillion won (US$943 million) in deposits has been withdrawn since the start of the walkout. A spokeswoman at the bank said the size of deposit withdrawal is smaller than the amount, but declined to elaborate on details.
The labor strike by the bank became the longest in the history of the local banking sector.
SC First Bank is the first lender in South Korea seeking to introduce a performance-based pay system, sparking vehement opposition from its labor union, which claims the new pay scheme is merely aimed at reducing labor costs.
Out of 6,500 bank employees, half of whom are unionized workers, about 2,900, according to labor union estimates, have been staging a rally at a resort in Sokcho, 213 kilometers east of Seoul.
The bank said management and the labor union have yet to narrow differences.
Richard Hill, the CEO of SC First Bank, visited the walkout site last week for negotiations but failed to draw an agreement with the union, which insisted the new payment system does not suit Korean culture.
The Financial Supervisory Service, the financial watchdog, said it is closely watching the situation and plans to add more on-site inspectors in case of contingencies.
